Consortium Budget Item Usage

Example 1:

You have established a consortium agreement with a subrecipient for a total of 20,000 USD. Of this amount, 15,000 USD represents direct costs and 5,000 USD represents indirect costs that were incurred by the subrecipient. The primary institution has an indirect cost recovery rate of 50 percent.

PeopleSoft recommends the usage outlined in this table:

Budget Item	Amount or Percent
SUB<25	15,000
SUB<25F	5,000
Institution F&A Base Amount	20,000
Institution F&A Rate	50 percent
Total Institution Recoverable Costs	10,000

This usage maps to form PHS 398, page HH. Consortium and contractual costs are:

• Direct Costs = 15,000 USD.

• Indirect Costs = 5,000 USD.

Example 2:

You have established a consortium agreement with a subrecipient for a total of 100,000 USD. Of this amount, 60,000 USD represents direct costs and 40,000 USD represents indirect costs that were incurred by the subrecipient. The primary institution has an indirect cost recovery rate of 50 percent. You can complete this transaction in two ways.

Here is the first way:

Budget Item	Amount or Percent
SUB<25	25,000
SUB<25F	0
SUB>25	35,000
SUB>25F	25,000
Institution F&A Base Amount	25,000
Institution F&A Rate	50 percent
Total Institution Recoverable Costs	12,500

Here is the second way:

Budget Item	Amount or Percent
SUB<25	15,000
SUB<25F	10,000
SUB>25	45,000
SUB>25F	30,000
Institution F&A Base Amount	25,000
Institution F&A Rate	50 percent
Total Institution Recoverable Costs	12,500

This usage maps to PHS 398 Page HH. Consortium and contractual costs are:

• Direct Costs = 60,000 USD.

• Indirect Costs = 40,000 USD.